Is membrane filtration a viable solution to Shanghai's poor

municipal water quality?

A Panoramic Study

Introduction
The city of Shanghai now stands as the centerpiece of Chinas economic development
as a prominent trading port, diverse cultural hub, and international financial center.
Shanghais municipal water quality, however, does not reflect the standard of a leading global
city. According to a case study conducted jointly by the United Nations Environment Program
and the World Health Organization, approximately 80% of Shanghais city water is extracted
from the Huangpu River. The river, which runs through the heart of Shanghai, annually
receives 71% of all industrial and domestic wastewater discharge, totaling 30 billion tons of
sewage pollution up to 2005. Additionally, 7.2 million tons of livestock manure and other
organic wastes flow into the Huangpu River yearly.1 In response, Shanghais water authorities
utilize powerful chemical treatments that leave harmful residues in household water supplies.
The Deputy Director of Shanghai Environmental Protection Bureau, Gu Huizhen, stated that
hazardous substances such as chlorine, lead, and nitrates pose a serious health threat as the
water reaches the taps of Shanghai residents.2
Faced with these challenges, environmental governance institutions such as the
Shanghai Water Authority must make the tough decisions under uncertainty, complexity, and
substantial biophysical constraints as well as conflicting human values and interests, as
described by the Science Magazine article The Struggle to Govern the Commons.3 One of
these tough decisions involves whether or not Shanghai should replace traditional purification
methods with membrane filtration technology to significantly improve water quality. This
consideration would challenge conflicting human values and interests rooted in economic,
social, and political conversations between the Chinese government and its citizens, forming a
dialogue involving scientists, resource users, and interested publics.4
1

Chonghua Zhang, "Case Study II* - Shanghai Huangpu River, China," in Water Pollution Control - a Guide to the Use of Water
Quality Management Principles, ed. Richard Helmer and Ivanildo Hespanhol (n.p.: United Nations Environment Programme,
n.d.), 2.
2 Huizhen Gu, "Surface Water Pollution and Control in Shanghai," interview, Shanghai Environment Online, last modified

1999, accessed April 10, 2016, http://www.envir.gov.cn/wp/wp6-5.asp.

3

Thomas Dietz, Elinor Ostrom, and Paul C. Stern, "The Struggle to Govern the Commons," Science, December 12, 2003, 1907.

Dietz, Ostrom, and Stern, "The Struggle to Govern," 1910.

This study finds that the cost-eectiveness, public need, and regulatory compatibility of
membrane filtration technology make it a viable solution to Shanghais poor municipal water
quality.

Cost-eectiveness of membrane filtration

The authors of The Struggle to Govern the Commons explain that commerce has
become regional, national, and global, and institutions at all of these levels have been created
to enable and regulate trade These institutions shape environmental impact and provide
mechanisms for environmental governance.5 Indeed, the institution, or the Shanghai Water
Authority, will be pressured by the commerce, which is Shanghais increasing participation
in the membrane filtration market. As an implication, authorities are beginning to consider
the incorporation of membrane technology in its water treatment procedures. In early 2016,
the Water Authority of Shanghais Songjiang District considered the installation of Koch
Membrane Systems reverse osmosis modules at its water treatment plants. One of the largest
districts in Shanghai, Songjiang District is home to a population of 1.756 million. The director
of this major districts Water Authority believes that he would be open to more advanced
filtration technologies as long as cost-eective standards are favorable.6
The economic benefits and cost evaluations of membrane filtration are becoming
increasingly evident as the technology enters Shanghais water treatment market. On a
macroeconomic level, the Chinese market demand for membrane technology grew at a
stunning compound rate of 20%, greater than both the global membrane market and Chinas
GDP growth rate. According to water resource intelligence agency IIICorp, it is estimated that
this market will expand twofold in value four years from 2016.7 With the city of Shanghai at the

Dietz, Ostrom, and Stern, "The Struggle to Govern," 1908.

Yunchu Gao, "" [Songjiang District Water Aairs], , last modified January 2016, accessed April 11, 2016,
http://sjswj.songjiang.gov.cn.
6

Ricky Zhu and Evan Press, China's Membrane-Based Water Treatment Industry, Inside Industrial Infrastructure Business
Intelligence (New York, NY: Inside Industrial Infrastructure, 2016), 3.

forefront, China is currently leading the worlds market of membrane products with a share of
up to 30%. The market will definitely continue to grow because of a stable foundation of
foreign investments from firms such as Dow Chemical, General Electrics, and Koch Industries.
The growth is continually stimulated by healthy market competition. 8 This reports line of
reasoning leads to the inference that an economic trend at an international level will greatly
bolster the role of membrane technology in Shanghais water governance.
On a microeconomic level, membrane filtration technology has some limitations. A
study conducted by the Journal of American Water Works Association showed the restraint of
expensive membrane filter replacements. In fact, the initial purchase of the filtration system is
only a small component of the overall expense, while replacement membrane modules
constitute the second largest portion of the operational cost. The cost of a membrane filter is
typically 192%-200% that of conventional filters. However, typical membrane systems have a
life expectancy of over 20 years and membrane modules last over 10 years. 9 The average
membrane unit can last as long as three times the lifespan of a non-membrane unit, making
membrane systems a more cost-eective solution in the long term.10
Membrane systems do also consume greater energy than that of conventional systems
during operation. Purchased at an average cost of $0.103/kWh, the electrical energy accounts
for an average of 28.6% of all operational costs of membrane filtration. 11 This is a reasonable
concern because filtration at a higher eciency level would significantly increase energy use as
well. However, recent membrane technologies developed optimization methods to lower the
electrical energy used by the filtration process. According to a separate study by the Journal of
American Water Works Association, the most intensive usage of energy comes from the high
pressure of water flow and the backwash cleaning process. Thus, water treatment plants can

Zhu and Press, China's Membrane-Based Water Treatment, 4.

Mark R. Wiesner et al., "Cost Estimates for Membrane Filtration and Conventional Treatment," American Water Works
Association 86, no. 12 (December 1994): 33.
10
11

Wiesner et al., "Cost Estimates for Membrane," 36.

Andrew Gere, "Microfiltration Operating Costs," American Water Works Association, Membrane Operations ser., 89, no. 10
(October 1997): 43.

optimize energy usage by 19%-20% through enlarging membrane sizes, lowering water
pressure, and minimizing backwash cleaning. 12
Additionally, the membrane technique outweighs other conventional methods in terms
of chemical expenditure. Non-membrane techniques usually rely on a substantial amount of
coagulation and treatment chemicals to separate pollutants from water. Membrane filtration,
however, uses less than 56% of the amount of chemicals in conventional methods because it is
a predominantly physical separation process. This results in chemicals accounting for only 7%
of the average cost for membrane operations.13 Eliminating chemicals from the filtration
process not only lowers cost, but also prevents chemical contamination and improves water
quality.
The salary paid to water treatment plant operators represents the largest portion of the
production cost at 31.6%.14 Even so, this area of expenses is especially manageable in the city of
Shanghai. Labor cost in China as of 2016 is roughly one-fourth of that in the United States,
which drastically reduces operational expenses.15 With more simplified operational interfaces
that come with more advanced membrane filtration units, the cost of labor can be significantly
reduced.
These macroeconomic and microeconomic advantages, including the burgeoning
membrane market, powerful energy optimization, minimal chemical use, and favorable labor
cost, make membrane filtration a financially sustainable solution for long-term use.
Additionally, the financial momentum from a steady investment market in Shanghai would
invite the governments interest in participating in the water sector. Through subsidies, grants,
or even public projects of membrane filtration systems, the Shanghai Municipal Government
can generate significant revenue from an increased level of water infrastructure and
12

Andrew Gere, "Microfiltration Operating Costs," American Water Works Association, Membrane Operations ser., 89, no. 10
(October 1997): 43.
13

Gere, "Microfiltration Operating Costs," 45.

14

Gere, "Microfiltration Operating Costs," 45.

15

United States Department of Commerce, "Labor Costs," Access Costs Everywhere, accessed April 11, 2016, http://
acetool.commerce.gov/labor-costs.

environmental value. The improved quality of drinking water as a result of membrane

filtration can also vitalize local economy by raising property and land values.

Public demand of advanced filtration systems

Domestic water supply is a socially complex topic in the city of Shanghai. In average
Shanghai households, tap water has been traditionally unsafe for direct drinking because of
dangerous levels of rust, sediment, heavy metals, and chlorine. Most families have to boil tap
water before consumption unless they opt for bottled water service. As The Struggle to
Govern the Commons describes, eective [environmental] governance requires not only
factual information about the state of the environment and human actions but also
information about uncertainties and values.16 A survey conducted by the leading Shanghai
Fudan University reveals such information about uncertainties and values of Shanghai
residents in their divergent views of household water supplies. The geographically relevant
study covered 217 average-income households in the Yangpu district. As shown, 58.99% of the
surveyed households in Shanghai drink tap water after boiling, while 11.52% consume bottled
water, and the rest uses a combination of both.17 One counterargument against the application
of membrane filtration may point out that only about half of the households actually consume
water from the tap, which undermines the need for adjustments to the municipal waterworks.
However, the same survey shows overwhelming resident opinion that show promise of
advanced filtration systems. 76.12% of all surveyed households regularly discuss the quality of
domestic water supplies, and 97.62% of those residents believe that the government should
improve water treatment processes.18 The survey uses these statistics to indicate the Shanghai
residents awareness and demand of improved water filtration systems. Additionally, almost
90% of the surveyed bottled water service users do not restock water frequently, leading to
16

Dietz, Ostrom, and Stern, "The Struggle to Govern," 1908.

17

Songhui Jiang, "" [Shanghai Yangpu District Residential Community Drinking

Water Survey], Journal of Occupational and Environmental Medicine 20, no. 1 (February 2003): 43.
18

Jiang, "," 45.

secondary contamination from bisphenol-A in the plastic bottles. 19 This data indicates that if
the government adopted technology such as membrane filtration, more residents would switch
to consuming tap water in order to eliminate fees and health risks of bottled water service and
inconveniences of boiling water before drinking.

Compatibility with government regulations

The political circumstances surrounding water management in China is complex and
problematic. A research report on the state of Shanghais water resources published by the
UN-established Center for Human Settlements points out that coordination between
economic planning and water resource use in China is insucient. Specifically, the two main
government agencies in charge of water-related economic aairs, the State Planning
Commission and State Economic Commission, do not have significant control over the local
use of water resources. Also, national water resource agencies cannot fully dominate the
decisions of local water ministries.20
These limitations actually work in favor of the implementation of membrane filtration
systems, because a lack of top-down control in Chinese water management allows for more
autonomy in decisions made by local water authorities. As stated in The Struggle to Govern
the Commons, environmental governance strategies that rely exclusively on centralized
command and control have been tried and have failed.21 Fortunately, Chinas national
agencies responsibilities are only limited to the oversight and guidance with regards to water
management, therefore the installation of membrane systems in the city of Shanghai would
not warrant interference from a national level.

19

Jiang, "," 45.

20

The Center for Human Settlements, Water Sources in Shanghai, research report no. 1 (Vancouver, BC: Center for Human
Settlements, n.d.), 13.
21

Dietz, Ostrom, and Stern, "The Struggle to Govern," 1910.

Additionally, the Central Committee of the Peoples Republic of China launched the
13th Five-Year Plan in 2016, with environmental governance at the forefront. It emphasized the
importance of cooperating with foreign technological partners in the area of water treatment
process equipment as well as the need for research and development of advanced industrial
technologies.22 This national agenda paves the way for the implementation of membrane
filtration technology, which matches Chinas vision of advanced infrastructure.
Conclusion
Taking its cost-eectiveness, public demand, and governmental compliance into
consideration, membrane filtration is an undeniably viable solution to Shanghais poor
municipal water quality. The finding includes, however, certain implications that need to be
addressed. First, an improved quality of household water supplies would increase the burden
of cost on Shanghai residents. The government should do its part in adequately subsidizing
drinking water costs and advocating for cleaner water. In terms of realistic limitations, the cost
of filtration of membranes becomes equal or even less than that of conventional methods at
capacities of approximately 5 million gallons per day.23 This optimal operational scale implies
that membranes guarantee a higher water quality at a lower cost when serving about 10,000
people per unit. For Shanghai, this means that an average district should install 10-15
membrane filtration systems for the most ideal water management. Ultimately, membrane
filtration would bring about public health value that simply cannot be put into monetary
terms.

22

Zhu and Press, China's Membrane-Based Water Treatment, 7.

23

Wiesner et al., "Cost Estimates for Membrane," 37.

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